Sterling close to 12 month highs as we start our first full week of 2014

Sterling finished off last week with mixed fortunes, with conflicting data releases coming out. The UK currency rose against the euro leading to a third weekly gain, helped along by the improving house price index. Conversely, sterling lost ground for the second consecutive day against the US dollar for the biggest weekly loss in nine, undermined by figures showing a slowing down in both the manufacturing and construction sectors. Moving out of the holiday period, this week brings us back to a full showing of data releases, kicking off today with the purchasing managers index from the services sector. A measure of the house price index tides investors over until Thursday when we have the monthly Bank of England (BoE) meeting where the Monetary Policy Committee members will vote on the current levels of quantitative easing and interest rates. No changes are expected although any comments will be closely monitored as the markets look for clues as to when interest rates will be increased. Friday rounds off the first full week of the new year with manufacturing production figures released alongside the GDP estimate from the National Institute of Economic and Social Research. Call your trader now for the latest sterling rates, as it looks for a more well-rounded week.